Pure Storage (PSTG) Rallies 2.42% on Q2 Beat, Analyst Upgrades, Hits Intraday High Since September 2025

Pure Storage (PSTG) shares rose 0.93% in premarket trading, extending a two-day rally that has lifted the stock 2.42% over the past two sessions. The equity hit an intraday high of $87.17, its highest level since September 2025, with a 1.09% gain during the session. This momentum reflects renewed investor confidence in the enterprise storage provider following a series of positive catalysts.

Analysts have recently upgraded their outlook for PSTG, with Citigroup and Evercore ISI raising price targets to $81.00 and $85.00, respectively. The stock’s 14 “Buy” ratings out of 20 recommendations highlight strong conviction in its growth trajectory. Q2 2025 results reinforced this optimism, as the company exceeded earnings estimates by $0.04 and reported 12.7% year-over-year revenue growth to $861 million. Annual Recurring Revenue (ARR) reached $1.79 billion, a 22.4% increase over two years, underscoring the stability of its subscription-based model.

Institutional investors have also signaled support through increased holdings. Vanguard Group and T. Rowe Price added to their positions, while Norges Bank entered a new stake worth $225.2 million in Q2 2025. These moves, combined with a 13% potential upside from the current consensus price target of $77.39, suggest sustained demand from long-term capital allocators. However, mixed insider activity, including recent sales by senior executives, has introduced some short-term uncertainty.

Technically, PSTG’s stock has broken above key moving averages, with its 50-day and 200-day averages at $63.39 and $54.63, respectively. Despite a forward P/E ratio of 42.6, the valuation is justified by robust free cash flow margins and consistent EPS growth. The company’s leadership in all-flash storage solutions, particularly its Purity software, positions it to benefit from expanding hybrid cloud adoption, a trend analysts view as a key growth driver.

While valuation multiples remain elevated, the alignment of financial performance, analyst sentiment, and institutional backing suggests PSTG is well-positioned for continued momentum. Investors will likely monitor upcoming earnings and guidance for further validation of the company’s ability to sustain its growth trajectory amid macroeconomic pressures.